Businesses perform a large share of their research and development in a small number of geographic areas, two of the largest being the San Jose-San Francisco-Oakland area and the New York-Newark-Bridgeport area. In these two areas alone, designated as combined statistical areas (CSAs) by the Office of Management and Budget, companies performed at least $29.3 billion of R&D, according to a recent National Science Foundation report.

Data are from the 2008 Business R&D and Innovation Survey (BRDIS). These new BRDIS data allow policymakers and researchers to explore patterns in R&D spending in greater geographic detail than previously available, and they provide new insight into how companies organize their R&D activities. This report highlights early findings from these data and discusses geographic patterns of business R&D within the United States.

The National Science Foundation (NSF) is an independent federal agency that supports fundamental research and education across all fields of science and engineering. In fiscal year (FY) 2015, its budget is $7.3 billion. NSF funds reach all 50 states through grants to nearly 2,000 colleges, universities and other institutions. Each year, NSF receives about 48,000 competitive proposals for funding, and makes about 11,000 new funding awards. NSF also awards about $626 million in professional and service contracts yearly.